Arizona is the 6th largest state and the population is predominantly urban based. It is known for its vast, rugged desert but the state actually has a lot of shoreline because of man-made lakes. Arizona is boxed in on the west by California, on the north by Utah, on the east by New Mexico and the Mexico border on the south. The total population of the state is currently about 7,500,000 with Baby Boomers as the most fertile demographic, as more of them retire each year.
Phoenix is the largest city in Arizona (1,700,000 population) followed by Tucson (575.000) and Mesa (500,000). Accordingly the individual office sublet market as well as the coworking space is somewhat subdued on a state wide basis and yet in the major urban areas it is much more active. Small to be sure, but active.
Zillow lists 55,000 homes for sale in the state and the largest office building is Chase Tower which is in Phoenix. It is a 38 story building with 725,000 square feet of office space. The next tallest building is the Marina Heights B Building which is 585,000 square feet.
The demand for shared professional office space is fueled by job growth above the national average. Healthy market conditions are pushing office rent upwards and current average market rates are in the range of $25-$28 per sq. ft. The overall vacancy rate is poised to rise a bit because of substantial new development breaking ground. It remains to be seen if the market can accommodate the new space coming on line this year and next.
Northrop Grumman is expanding in the engineering and operations sectors in Gilbert, and they also opened a new Launch Vehicles Division HQ in Chandler. In Scottsdale, Universal Health Services is adding a new facility, and there is good expansion in the Warehouse sector with, for example, 600,000 sq ft in the Landing at the Mesa Gateway location.
Real estate here tends to spread out, rather than vertically packed in larger multi story buildings. Coworking flourishes along with office sublets, predominantly in the urban centers but also is rather prolific further out. LookingForSpace offers a good selection of individual offices for sublease in a variety of professional firms and practices with extra offices, who are seeking other appropriate professionals to share their office space and amenities and be a positive addition to a productive environment. We offer the ability to choose prospective spaces by the profession of the "host" firm as well as the neighborhood location.